Hannon Armstrong (HASI) Invests 1.3 GW Renewables of AES Corp in USA

Climate solutions investor Hannon Armstrong Sustainable Infrastructure Capital (HASI) has announced the close of two new programmatic investments in grid-connected renewable energy assets developed, owned and operated by the AES Corporation. The US based HASI is a public company that provides capital to assets developed by companies in energy efficiency, renewable energy, and other sustainable infra markets.

At present HASI maintains over $9 billion in managed assets. AES too is one of the largest renewable energy developers and operators in America with a 51 GW development pipeline.

Per the agreement, HASI will make a common equity investment in an about 1.3 GW portfolio of operating solar and wind projects located in six states: Arizona, California, New York, South Dakota, Utah, and Virginia. The public firm is also financing land owned by AES for a solar project and a standalone battery energy storage system in California.

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Susan Nickey, Chief Client Officer, HASI, said, “We are thrilled to expand our programmatic relationship with AES through this new partnership, which is designed to encourage additional investments over the next several years.”

Leo Moreno, President, AES Clean Energy, informed, “AES is committed to accelerating a greener, smarter energy future. This investment creates an opportunity to expand our development of renewable energy projects, growing our portfolio of wind, solar and battery energy storage facilities across the U.S.”

As per the deal, HASI intends to acquire a 49% equity interest in the portfolio that includes 17 operating solar projects, and one wind project. With a weighted average remaining contract life of approximately 18 years, the portfolio’s cash flows are contracted with a diverse group of predominately investment-grade corporate, utility, and municipal off-takers. HASI said that AES will continue to own and operate the assets.

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Solar And Storage Land Financings

The additional solar and storage land financings build on the five-year track record of solar land transactions with AES’ clean energy business in the U.S.

“These senior-level land financing and common equity transactions with AES are a great example of how we help solve the multiple investment needs of our clients, all transacted with an integrated team,” said Manny Haile-Mariam, MD, HASI.

Recently, HASI was named in the global environmental non-profit CDP’s 2022 ‘A List’ recognising its leadership role for climate positive actions and environmental disclosure performance.